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Depreciation
A. Costs (on annual basis) are constant when the straight line method is used for its determination
B. Is the unavoidable loss in the value of the plant, equipment and materials with lapse in time
C. Does figure in the calculation of income tax liability on cash flows from an investment
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Which of the following is not a component of the working capital for a chemical process plant?
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Equipment installation cost in a chemical process plant ranges from __________ percent of the purchased equipment cost.
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For a given fluid, as the pipe diameter increases, the pumping cost
D. May increase or decrease, depending upon whether the fluid is Newtonian or non-Newtonian
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Following the six-tenth factor rule, if a loglog plot of capacity of the equipment vs. cost of the equipment is made, then a straight line is obtained, whose slope is equal to
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Which of the following elements is not included in the scope of market analysis?
A. Competition from other manufactures
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Which of the following is not a mathematical method for evaluation of profitability of a chemical process plant?
B. Rate of return on investment
D. Discounted cash flow based on full life performance
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Which of the following is not a component of depreciation cost?
A. Repairs and maintenance cost
B. Loss due to obsolescence of the equipment
C. Loss due to decrease in the demand of product
D. Loss due to accident/breakdown in the machinery
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Total product cost of a chemical plant does not include the __________ cost.
B. Operating labour, supervision and supplies
C. Overhead and utilities
D. Depreciation, property tax and insurance
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In a chemical process plant, the total product cost comprises of manufacturing cost and the
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Which of the following is the cheapest material of construction for the storage of sodium hydroxide upto a concentration of 75%?
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A reactor having a salvage value of Rs. 10000 is estimated to have a service life of 10 years. The annual interest rate is 10%. The original cost of the reactor was Rs. 80000. The book value of the reactor after 5 years using sinking fund depreciation method will be Rs.
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A present sum of Rs. 100 at the end of one year, with half yearly rate of interest at 10%, will be Rs.
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An annuity is a series of equal payments occuring at equal time intervals, and this amount includes the sum of all payments plus interest, if allowed to accumulate at a definite rate of interest from the time of initial payment to the end of annuity term. Ordinary annuity is used in the calculation of the
B. Depreciation by sinking fund method
C. Discrete compound interest
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Nominal and effective interest rates are equal, when the interest is compounded
D. In no case, they are equal
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If the interest rate of 10% per period is compounded half yearly, the actual annual return on the principal will be __________ percent.
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Accumulated sum at the end of 5 years, if Rs. 10000 is invested now at 10% interest per annum on a compound basis is Rs.
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The amount of compounded interest during 'n' interest periods is
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A balance sheet for an industrial concern shows
A. The financial condition at any given time
D. Only current and fixed assets
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Maximum production start up cost for making a chemical plant operational is about __________ percent of the fixed capital cost.
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Effective and nominal interest rates are equal, when the interest is compounded
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Which of the following is not a component of working capital?
A. Raw materials is stock
B. Finished products in stock
C. Transportation facilities
D. Semi-finished products in the process
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Annual depreciation costs are constant, when the __________ method of depreciation calculation is used.
C. Sum of the years digit
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__________ of depreciation calculation does not take into account the interest on investments.
C. Sum of the years-digits method
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The 'total capital investment' for a chemical process plant comprises of the fixed capital investment and the
C. Indirect production cost
D. Direct production cost
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In an ordinary chemical plant, electrical installation cost may be about
A. 10-15% of purchased equipment cost
B. 3-10% of fixed capital investment
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Expenditure on research and development (R & D) is categorised as the __________, while making an estimate of the total product cost for a chemical plant.
D. Direct production cost
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Profit is equal to revenue minus
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Pick out the wrong statement.
A. Longer tubes are less expensive per unit heat transfer area as compared to shorter tubes
B. A cost index is merely a number for a given year showing the cost at that time relative to a certain base year
C. Turnover ratio of a chemical plant is the ratio of gross annual sales to the fixed capital investment
D. Plates with butt welded joints are less expensive compared to lap welded joints, because squaring of plates is not necessary
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__________ of depreciation calculation accounts for the interest on investment.